27.11.06 Carlsberg in China .pdf - Carlsberg Group

Price is increasing over time
Factors pushing increase:
Driving need for every brewer in China to raise pricing
Elimination of weakest breweries – either acquired or unsustainable due
to loss
Consolidation creating dominant provincial players
Gradual tightening of tax system reduces size of ‘grey market’
Economic growth, urbanization and higher disposable income allows for
portfolio strategy and premiumisation to increase average price
Greater professionalisism on advertising and branding
Brand consolidation and investment – small brands of acquired breweries
are being replaced by main brands of acquirer to increase average selling
price